The notes are issued by BNY Trust Company of Australia Limited inits capacity as trustee of Bella Trust No. 2 Series 2011-2. TheBella Trust No.2 Series 2011-2 is a legally distinct trustestablished pursuant to a master trust and security trust deed.

The final 'AAAsf' rating assigned to the Class A notes are basedon the quality of the collateral; the 20% credit enhancementprovided by the subordinate notes; the liquidity reserve accountof 1% of outstanding notes, funded by issuance proceeds; theservicer reserve fund sized at 3.5% of outstanding notes, fundedby issuance proceeds; an interest rate swap provided by Lloyds TSBBank plc, Australia branch; and CFAL's auto and equipmentreceivable underwriting and servicing capabilities.

The ratings assigned to the Class B, C, D and E notes are based onall the strengths supporting the Class A notes, excluding theircredit enhancement levels, but including the credit enhancementprovided by each class of notes' respective subordinate notes.

"The transaction benefits from a diversification of a large numberof small business borrowers across a broad range of industries.In addition, the issued notes benefit from a solid flow of excessspread which is available to cover realized losses before theyresult in any principal loss on the notes," said Spencer Wilson,Associate Director in Fitch's Structured Finance team.

At the cut-off date, the total collateral pool consisted of 24,700automotive and equipment loan receivables totalling approximatelyAUD680.6 million, with an average size of AUD27,554. The pool ismade up of amortising principal and interest loans for both new(44.6%) and used (20.4%) passenger and light commercial vehicles,as well as trucks (9.5%) and other equipment (25.5%). Theweighted average balloon payment for the portfolio is 29.7%.

"At the same time, we affirmed the 'B+' long-term corporate creditrating on Hopson and the 'B' issue rating on the company'soutstanding senior unsecured notes," S&P stated.

"We revised the outlook to reflect our view that Hopson'sliquidity and financial strength are likely to further weaken in2011-2012," said Standard & Poor's credit analyst Bei Fu. "Thecompany's aggressive debt-funded expansion, weak sales executionrecord, and ongoing corporate governance are among the key creditrisks. By the end of June 2011, Hopson's total borrowings hadgrown by 70% year over year to Hong Kong dollar (HK$) 33.4billion."

"Hopson's execution ability is weaker than we expected andsubstantially lower than peers' with a similar size land bankduring the first half of 2011. The company's contract sales ofChinese renminbi (RMB) 5.33 billion during this period were weakerthan our expectation. We attribute Hopson's weak sales to itsheavy exposure to tier-one cities (such as Beijing, Shanghai, andGuangzhou) and, increasingly, to high-end projects. Slow progressat collecting sales proceeds further weakened Hopson's liquidity.Policy measures are likely to particularly hit high-end projectsin tier-one cities this year," S&P noted.

"We expect Hopson's refinancing risks to heighten in the next 12months. The company has substantial short-term debt as of the endof June 2011. This amount does not include US$350 million insenior unsecured notes maturing in November 2012. In our view, thecompany's financial management is aggressive and it has notclearly articulated its financial policies. The ratio of totaldebt to EBITDA (adjusted) is likely to be more than 6x for full-year 2011, a level higher than most 'B+' rated peers. This isattributable to the large capital expenditure Hopson needs tosupport its aggressive growth plans, its weak sales executionrecord, and the uncertain outlook for the property market. We notethat the company's increased borrowings materially outpace itssales growth," S&P noted.

"We view Hopson's corporate governance as weak, which continues toput pressure on the rating. The company has a significant amountof ongoing related-party transactions. In the past few years,senior management has frequently changed. Further, informationdisclosure remains limited and untimely," S&P said.

The rating also reflects risks associated with Hopson's strategyto expand its investment property portfolio in the next two years.In our view, the company is likely to increase its exposure to thecapital-intensive and long pay-back nature of the commercialleasing property segment.

"All these risks are tempered by Hopson's established brand name,diverse revenue stream compared with 'B+' peers', its large andlow-cost land reserves, and good profit margins," said Ms. Fu.

S&P may lower the rating if:

Hopson's liquidity position becomes weak;

Contract sales in the second half of 2011 are lower than HK$8 billion;

Financial ratios deteriorate, such that EBITDA interest coverage is less than 2x;

"We could revise the outlook to stable if Hopson improves theexecution of its growth strategy and demonstrates financialdiscipline. This would result in: (1) improved cash flow andliquidity protection, including a ratio of total debt to EBITDA(adjusted) that is lower than 5x on a sustainable basis; and(2) an adequate liquidity position," S&P stated.

As counsel to the Debtor, Greenberg Traurig will advise the Debtorof its rights and obligations and performance of its duties duringadministration of the Chapter 11 case.

The firm is expected to attend meetings and negotiations withother parties-in-interest in the case; take all necessary actionto protect and preserve the Debtor's estate; negotiate and preparea plan of reorganization, disclosure statement and related papers;represent the Debtor in all proceedings before the BankruptcyCourt or other courts; and prepare on behalf of the Debtor allnecessary applications, motions, answers, orders and otherdocuments.

The firm will also be advising the Debtor with respect to (i) thesubpoena issued by the U.S. Securities and Exchange Commission,(ii) certain Chinese law-related issues, and (iii) the Debtor'sefforts in the British Virgin Islands and China to safeguardassets.

The Firm has agreed to discount the fees charged to the Debtor by10% solely for purposes of the Chapter 11 case and consistent withthe parties' prepetition retention agreement. The Firm will alsocharge the Debtors for reasonable and necessary expenses inrelation to the retention.

In connection with the Firm's pre-bankruptcy representation of theDebtor, the Firm received payments prior to the Petition Dateaggregating $735,854, of which $350,000 was in the form of anadvance payment retainer. After application of the AdvancePayment Retainer, the Firm was owed $43,007. Upon court approval,the Firm will write off this amount and waive the related claimagainst the Debtor.

The Debtor also seeks Court authority to pay the Firm a $300,000postpetition advance payment retainer for the anticipated legalservices.

Nancy A. Peterman, Esq., a Greenberg Traurig professional, assuresthe Court that her firm does not hold or represent any interestadverse to the Debtor and thus, is a "disinterested person" asthat term is defined under Section 101(14) of the Bankruptcy Code.

The Firm disclosed that from time to time, it has representedcertain of the Debtor's creditors and other parties-in-interest onunrelated matters.

About ShengdaTech

Headquartered in Shanghai, China, ShengdaTech, Inc., makes nanoprecipitated calcium carbonate for the tire industry.ShengdaTech converts limestone into nano-precipitated calciumcarbonate (NPCC) using its proprietary and patent-protectedtechnology. NPCC products are increasingly used in tires, paper,paints, building materials, and other chemical products. Inaddition to its broad customer base in China, the Companycurrently exports to Singapore, Thailand, South Korea, Malaysia,India, Latvia and Italy.

SHENGDATECH INC: To Tap Lionel Sawyer as Nevada Special Counsel---------------------------------------------------------------ShengdaTech, Inc., seeks to hire Lionel Sawyer & Collins as itsspecial counsel, acting through the special committee of the Boardof Directors of the Debtor, nunc pro tunc to Aug. 19, 2011.

Lionel Sawyer will act as Nevada counsel to assist special counselSkadden, Arps, Slate, Meager and Flom as necessary to continue theinvestigation into accounting irregularities that gave rise to theChapter 11 case and to represent the Special Committee inconnection with the case and to provide advice on matters relatedto Nevada law.

Lionel Sawyer has informed the Debtor that it will take allappropriate steps to avoid unnecessary and wasteful duplication ofefforts by any other professionals retained in the Debtor's case.

The Debtor proposes to pay Lionel Sawyer in accordance with thefirm's hourly rates:

Attorneys $185 to $650 Law Clerks $140 Paralegals $160 to $200

The Debtor will also pay the Firm for reasonable and necessaryexpenses incurred.

Jennifer A. Smith, Esq., assures the Court that her firm does nothold or represent any interest adverse to the Debtor, itscreditors, or any other party-in-interest in the case, withrespect to the matters on which the firm is to be employed.

About ShengdaTech

Headquartered in Shanghai, China, ShengdaTech, Inc., makes nanoprecipitated calcium carbonate for the tire industry.ShengdaTech converts limestone into nano-precipitated calciumcarbonate (NPCC) using its proprietary and patent-protectedtechnology. NPCC products are increasingly used in tires, paper,paints, building materials, and other chemical products. Inaddition to its broad customer base in China, the Companycurrently exports to Singapore, Thailand, South Korea, Malaysia,India, Latvia and Italy.

B.M. OPTICAL: Creditors' and Members' Meetings Set for Oct. 4-------------------------------------------------------------Creditors and members of B.M. Optical International CompanyLimited will hold their annual meetings on Oct. 4, 2011, at9:30 a.m., at the office of FTI Consulting (Hong Kong) Limited,Level 22, The Center, at 99 Queen's Road Central, Central, inHong Kong.

At the meeting, John Howard Batchelor, the company's liquidator,will give a report on the company's wind-up proceedings andproperty disposal.

EAST-WEST STRATEGIC: Creditors' Proofs of Debt Due Oct. 24----------------------------------------------------------Creditors of East-West Strategic Development Commission Limited,which is in members' voluntary liquidation, are required to filetheir proofs of debt by Oct. 24, 2011, to be included in thecompany's dividend distribution.

FEED THE CHILDREN: Members' Final Meeting Set for Oct. 31---------------------------------------------------------Members of Feed The Children Hong Kong will hold their finalgeneral meeting on Oct. 31, 2011, at 11:00 a.m. The meeting willbe held through the telephone conference.

At the meeting, Ho Mo Hing, the company's liquidator, will give areport on the company's wind-up proceedings and property disposal.

GENESYS CONFERENCE: Creditors' Proofs of Debt Due Oct. 25---------------------------------------------------------Creditors of Genesys Conference Limited, which is in members'voluntary liquidation, are required to file their proofs of debtby Oct. 25, 2011, to be included in the company's dividenddistribution.

At the meeting, Lam Chi Wai, the company's liquidator, will give areport on the company's wind-up proceedings and property disposal.

KENLAP CHEMICALS: Members' and Creditors' Meetings Set for Oct. 17------------------------------------------------------------------Members and creditors of Kenlap Chemicals Limited will hold theirmeetings on Oct. 17, 2011, at 10:30 a.m., and 11:00 a.m.,respectively at 32nd Floor, One Pacific Place, at 88 Queensway, inHong Kong.

At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, thecompany's liquidators, will give a report on the company's wind-upproceedings and property disposal.

LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases-----------------------------------------------------------------The Hong Kong Monetary Authority (HKMA) announced Sept. 16 thatinvestigation of over 99% of a total of 21,824 Lehman-Brothers-related complaint cases received has been completed. Theseinclude:

* 15,772 cases which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance;

* 2,738 cases which have been resolved through the enhanced complaint handling procedures required by the settlement agreement;

* 2,210 cases which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation;

* 839 cases (including minibond cases) which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared in respect of 693 such cases and proposed disciplinary notices or decision notices have been issued in respect of the other 146 cases; and

* 153 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds.

Investigation work is underway for the remaining 110 cases.

A table summarizing the progress of the disciplinary andcomplaint-resolution work in respect of Lehman-Brothers-relatedcomplaints is available at http://ResearchArchives.com/t/s?76f3

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. Formore than 150 years, Lehman Brothers has been a leader in theglobal financial markets by serving the financial needs ofcorporations, governmental units, institutional clients andindividuals worldwide.

Additional units, Merit LLC, LB Somerset LLC and LB PreferredSomerset LLC, sought for bankruptcy protection in December 2009or more than a year after LBHI and its other affiliates filedtheir bankruptcy cases.

On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.District Court for the Southern District of New York, entered anorder commencing liquidation of Lehman Brothers, Inc., pursuantto the provisions of the Securities Investor Protection Act (CaseNo. 08-CIV-8119 (GEL)). James W. Giddens has been appointed astrustee for the SIPA liquidation of the business of LBI.

The Bankruptcy Court has approved Barclays Bank Plc's purchaseof Lehman Brothers' North American investment banking andcapital markets operations and supporting infrastructure forUS$1.75 billion. Nomura Holdings Inc., the largest brokeragehouse in Japan, purchased LBHI's operations in Europe for US$2plus the retention of most of employees. Nomura also boughtLehman's operations in the Asia Pacific for US$225 million.

International Operations Collapse

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd, LB Holdings PLC and LB UK REHoldings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann andMike Jervis, partners at PricewaterhouseCoopers LLP, have beenappointed as joint administrators to Lehman BrothersInternational (Europe) on Sept. 15, 2008. The jointadministrators have been appointed to wind down the business.

M003 COMPANY: Members' Final Meeting Set for Oct. 24----------------------------------------------------Members of M003 Company Limited will hold their final generalmeeting on Oct. 24, 2011, at 10:00 a.m., at Level 28, ThreePacific Place, at 1 Queen's Road East, in Hong Kong.

At the meeting, Natalia Seng Sze Ka Mee and Cynthia Wong Tak Yee,the company's liquidators, will give a report on the company'swind-up proceedings and property disposal.

At the meeting, Lam Chung Wah David, the company's liquidator,will give a report on the company's wind-up proceedings andproperty disposal.

TITANIUM TECHNOLOGY: Court Enters Wind-Up Order-----------------------------------------------The High Court of Hong Kong entered an order on Sept. 2, 2011, towind up the operations of Titanium Technology Limited.

The company's liquidator is Teresa S W Wong.

TOPCYCLE CONSTRUCTION: Members' Final Meeting Set for Oct. 18-------------------------------------------------------------Members of Topcycle Construction Company Limited will hold theirfinal general meeting on Oct. 18, 2011, at 9:40 a.m., at Room1601, Wing On Centre, at 111 Connaught Road Central, in Hong Kong.

At the meeting, Sum Kwan Yiu Philip, the company's liquidator,will give a report on the company's wind-up proceedings andproperty disposal.

WALL TREE: Lo and Leung Appointed as Liquidators------------------------------------------------Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 16, 2011,they have been appointed by the High Court of Hong Kong asliquidators of Wall Tree Development Limited on May 3, 2010.

WINTEC ELECTRONICS: Court Enters Wind-Up Order----------------------------------------------The High Court of Hong Kong entered an order on Sept. 7, 2011, towind up the operations of Wintec Electronics Limited.

The company's liquidator is Teresa S W Wong.

WISE UNION: Creditors' Proofs of Debt Due Oct. 24-------------------------------------------------Creditors of Wise Union Industries Limited, which is in members'voluntary liquidation, are required to file their proofs of debtby Oct. 24, 2011, to be included in the company's dividenddistribution.

YU KEE: Court to Hear Wind-Up Petition on Nov. 2------------------------------------------------A petition to wind up the operations of Yu Kee Trading CompanyLimited will be heard before the High Court of Hong Kong onNov. 2, 2011, at 9:30 a.m.

Tung Chun Soy Sauce and Canned Food Company Limited filed thepetition against the company on Aug. 25, 2011.

ASMITHA MICROFIN: CRISIL Cuts Rating on INR7.45BB Loan to CRISIL D------------------------------------------------------------------CRISIL has downgraded its rating on the debt instrument and bankfacilities of Asmitha Microfin Ltd to 'CRISIL D' from 'CRISIL C'.

The downgrade reflects delays by the company in servicing itsdebt. Asmitha, having been admitted to the corporate debtrestructuring (CDR) mechanism, has delayed its debt repayment onthe principal amount of its debt to preserve cash for disbursingloans outside Andhra Pradesh. CRISIL had, earlier, removed itsratings on the debt instruments and bank facilities of Asmithafrom 'Rating Watch with Negative Implications' and downgraded therating to 'CRISIL C' from 'CRISIL BB' because of the increasedprobability of Asmitha defaulting on its debt, subsequent to itsadmission for restructuring of debt under the CDR mechanism inApril 2011. CRISIL will continue to monitor the terms of the finalrestructuring under CDR, on the company's credit risk profile.

Asmitha is also exposed to risks related to the challengingoperating environment in Andhra Pradesh (AP) and to theconstrained funding environment, especially for AP-basedmicrofinance institutions (MFIs). Asmitha, however, benefits fromits experienced management.

About Asmitha Microfin

Set up in 2002 as a non-banking financial company, Asmitha is aMFI which offers microcredit to women. The company follows themicrocredit model of Grameen Bank, Bangladesh. As on March 31,2011, Asmitha's loans outstanding aggregated INR12.6 billion (ofwhich Andhra Pradesh accounted for more than 50 per cent of loansoutstanding).

For 2010-11 (refers to financial year, April 1 to March 31),Asmitha reported a profit after tax (PAT) of INR209.7 million on atotal income of INR4.4 billion, against a PAT of INR588.0 millionon a total income of INR2.86 billion for 2009-10. For the quarterended June 30, 2011, Asmitha reported a net loss of INR528.6million on a total income of INR613.4 million.

The downgrade reflects significant deterioration in BSFL'sfinancial flexibility and liquidity, given investors' and thebanking sector's apprehension towards microfinance entities basedin Andhra Pradesh (AP), and the threat this could pose to thelong-term sustainability of BSFL's operations in case there is nofresh funding. The downgrade also reflects BSFL's reduced networth because of losses and the fact that its capital base will beadversely affected if adequate fresh equity is not infused in thenext few quarters.

The rating continues to be on 'Rating Watch with NegativeImplications'. CRISIL will continue to monitor BSFL's ability toraise additional resources or equity and service its outstandingdebt in a timely manner.

BSFL's liquidity and financial flexibility have weakenedconsiderably in the past six months given the lack of freshfunding into the company despite several positive developments inthe microfinance sector, including acceptance of the MalegamCommittee's recommendations by the Reserve Bank of India (RBI),the release of priority sector regulations by RBI, and thecompletion of corporate debt restructuring (CDR) process by banksfor microfinance institutions (MFIs) based in AP. Given thebanking sector's continuing apprehensions regarding lending to themicrofinance sector, especially to MFIs with material exposures toAP, BSFL has been unable to raise additional bank funding orequity since the microfinance crisis (except for a INR250 millionbank loan draw down in March 2011). Furthermore, timelines forinfusion of fresh funds have been extended several times by BSFLin the past few months.

BSFL's internal cash accruals have also come under increasingpressure. Repayment rates on the AP portfolio continue to be lowat around 10 per cent, while those for the non-AP portfolio havefallen to around 90 per cent for the first four months of 2011-12(refers to financial year, April 1 to March 31) from around 97 percent earlier. In the absence of fresh funding, BSFL had to slowdown disbursements significantly in the past eight months, even tonon-AP states, resulting in a steady fall in repayment rates, andreduction in cash inflows, with the amortization of the non-APportfolio. BSFL is the only large AP-based MFI that did notexercise the option of restructuring its debt under the CDRmechanism. As the company continued to service its debt in atimely manner, its cash position eroded further. Given thestandstill clause on debt repayments under the CDR mechanism,CRISIL's downgraded its ratings on other AP-based MFIs that haveundergone debt restructuring under the CDR mechanism to default ornear-default levels. However, CRISIL did not downgrade its ratingson the debt instruments and bank facilities of BSFL with theexpectation that fresh bank funding would ease its liquiditypressure within a few months.

CRISIL believes that BSFL's cash inflows and outflows will be verytightly matched by October 2011, increasing the risk of delayedpayment on its debt, unless fresh debt or equity is infused. BSFLhad loans outstanding of INR10.5 billion as on June 30, 2011, ofwhich exposure to AP is INR3.75 billion (all of it categorized asnon-performing assets). CRISIL believes that for BSFL to serviceits debt in a timely manner, it will need to increase itsperforming loans to at least INR10 billion from around INR6billion currently; this will necessitate raising fresh funds ofINR5 billion to INR6 billion. BSFL is in advanced stages ofdiscussion with equity investors and banks for additionalfinancial support of about INR6 billion to INR8 billion includingpreference and equity capital. BSFL may also consider convertingsome of its debt to either equity or preference share capitalmitigate strain on its liquidity. There are also plans torecapitalize by reaching out to existing equity investors.Additional bank funds may be raised only after the capitalinfusions or debt conversions are completed. However, given thesteady erosion in BSFL's liquidity, the timing and quantum ofthese transactions assumes criticality.

CRISIL believes that BSFL will need to infuse sufficient funds byend of September 2011, for it to continue servicing debt in atimely manner. Given that BSFL's negotiations with bankers andinvestors are still ongoing, and that the timelines for infusionof funds may be extended further, its liquidity is criticallypoised, and the rating continues to be on 'Rating Watch withNegative Implications'.

BSFL's financial risk profile has been under substantial stress inthe quarter through June 30, 2011, on account of net losses ofINR827 million, driven by a 10 per cent provisioning for the non-performing portfolio in AP, and derecognition of interest incomeon this portfolio. The losses have resulted in an erosion in networth to INR1277 million as on June 30, 2011 from INR2102 millionthree months ago. The company had a capital adequacy ratio of 16.5per cent as on June 30, 2011. With full provisioning to beconcluded on the impaired portfolio by March 2013, the company'snet worth is at risk of turning negative, unless a sizeable equityinfusion materialises.

About Bhartiya Samruddhi

BSFL, a non-banking financial company promoted by BhartiyaSamruddhi Investments and Consulting Services Ltd, beganoperations in 1997. BSFL provides microfinance (credit andinsurance) services and knowledge-based technical assistance. Itsservices are organized under three major heads: livelihoodfinancial services, agricultural and business developmentservices, and institutional development services. The company'scustomers include small and marginal farmers, rural artisans,micro enterprises, and federations and co-operatives owned byself-help groups.

CRISIL believes that BSPL will continue to benefit over the mediumterm from its established source of seafood products from itsgroup companies. The outlook may be revised to 'Positive' if thecompany ramps up its operations successfully, leading to higher-than-expected revenues and profitability. Conversely, the outlookmay be revised to 'Negative' in case the company is unable toreach expected sales, leading to lower profitability and weakeningin its financial risk profile.

About Big Sam

BSPL, part of the TRITON group, was incorporated in 2010 andmarkets processed and frozen vegetarian food and meat. The companyis primarily engaged in branding and distribution of productspackaged by IOPL and IAPL. BSPL procures packaged seafood (packedunder the brand, Big Sam) from its group companies, IOPL and IAPL,and sells it through a network of distributors throughout thecountry. The company procures other products such as chicken andveggies from Al-kabeer and Vivek Agro, respectively. In the firstquarter of 2011-12 (refers to financial year, April 1 toMarch 31), BSPL's total revenue was around INR20 million.

CHILDREN EDUCATION: CRISIL Cuts Rating on INR80MM Loan to 'BB'--------------------------------------------------------------CRISIL has downgraded the rating on the long-term bank facilitiesof Children Education Society to 'CRISIL BB/Stable' from 'CRISILBBB+/Stable'.

The rating downgrade reflects deterioration in CES' liquidity onaccount of the significant increase in debt repayment obligations,due to the term loans contracted to fund the large, ongoing, debt-funded capital expenditure (capex) plan without commensurateincrease in cash accruals. The society's debt repayment obligationhas increased to around INR115 million in 2011-12 (refers tofinancial year, April 1 to March 31) from around INR60 million in2010-11 on account of the additional debt contracted for theINR520-million capex for setting up a new engineering college.Moreover, though the society generated cash accruals of INR230million in 2010-11, a significant portion of this was utilized tofund the capex, thus reducing the cash available for servicing thedebt. Around INR330 million of the capex was completed in 2010-11.The remaining INR190 million will be part-funded through internalaccruals, implying continued pressure on liquidity.

CRISIL believes that CES will continue to benefit from itspresence in various education streams over the medium term. Theoutlook may be revised to 'Positive' in case of improvement inCES's liquidity arising on account of fresh funding throughunsecured loans from promoters or more-than-expected contributionthrough Infrastructure Development Fund. Conversely, the outlookmay be revised to 'Negative' in case of further deterioration inthe society's liquidity, primarily if it undertakes an additionallarger-than-expected, debt-funded capex over the near term.

About the Society

CES, a Telugu linguistic minority educational society set up in1974, runs schools, and graduate, post-graduate, and professionalcolleges in various educational streams, in Bengaluru. The societyhas 40 institutes, a 2500-strong teaching staff, and around 15,000students. The society is currently developing an engineeringcollege at the Hongasandra campus in Bengaluru at a proposedproject cost of INR520 million. This capex, which is being fundedby bank term debt of INR295 million and internal accruals ofINR225 million, is expected to be completed by 2011-12.

The rating reflects GAPL's short-track record and start-up natureof operations in the cold storage industry, and weak financialrisk profile, marked by high gearing. These rating weaknesses arepartially offset by the low technology risk associated with theproject and support available to GAPL from government bodiesthrough various incentives and schemes.

Outlook: Stable

CRISIL believes that GAPL will continue to benefit over the mediumterm from the extensive industry experience of its promoters. Thecompany's financial risk profile will be constrained because oflarge debt contracted to fund its project and working capitalrequirements. The outlook may be revised to 'Positive' if GAPLreports better-than-expected growth in topline and margins,leading to improved financial risk profile, or if it manages itsworking capital requirements efficiently. Conversely, the outlookmay be revised to 'Negative' if the commissioning of GAPL's plantgets delayed, there are cost overruns in the project, or if topline and cash accruals are significantly lower than expected.

About Godwin Agro

Incorporated in 1994, GAPL is a public limited company promoted byMr. Ajit Jain, Mr. Akaash Jain, and Ms. Ritu Jain. The company issetting up a cold storage using controlled atmosphere technologyin Mohali (Punjab). It is planning to undertake end-to-endservices in the agricultural procurement, storage, and supplychain business. The total cost for setting up the project isINR241.1 million which will be funded through term loan of INR160million and remaining through equity capital. The plant isexpected to commence operation by the end of August, 2011.

The ratings reflect the extensive experience of KBR's promoter inthe civil construction industry and the company's averagefinancial risk profile, marked by comfortable gearing and averagedebt protection metrics. These rating strengths are partiallyoffset by KBR's small scale of operations, segmental andgeographic concentration in revenues, and susceptibility tointense competition in the civil construction industry.

Outlook: Stable

CRISIL believes that KBR will continue to benefit over the mediumterm from its experienced management and healthy order book. Theoutlook may be revised to 'Positive' if KBR diversifiesgeographically, and increases its scale of operations and improvesits profitability on a sustainable basis, leading to improvementin its business risk profile. Conversely, any deterioration infinancial risk profile, most likely caused by decline in revenuesand margins, large debt-funded capital expenditure (capex), ordelay in project execution or in receipt of bills from variousprincipal contractors, may lead to a revision in the outlook to'Negative'.

About KBR Infratech

Set up in 1992 by Mr. K Babu Raju, KBR undertakes civilconstruction works, such as construction of buildings, drainages,sewages, and roads, mostly in Karnataka. The company was initiallyset up as a sole proprietorship concern but was reconstituted as apublic limited company in 2010. KBR is based in Bengaluru(Karnataka) and undertakes projects for various governmententities, such as public works department, Karnataka HousingBoard, Karnataka Power Corporation Ltd, Panchayat Raj EngineeringDepartment among others. As on August 20, 2011, the company hasoutstanding orders of around INR3.4 billion.

KBR reported a profit after tax (PAT) of INR22 million on netsales of INR1075 million for 2010-11 (refers to financial year,April 1 to March 31), as against a PAT of INR17 million on netsales of INR744 million for 2009-10.

KINGFISHER CAPITAL: Moody's Withdraws 'C' Rating of Class B Notes-----------------------------------------------------------------Moody's Investors Service has withdrawn its ratings of two classesof notes issued by Kingfisher Capital CLO Limited, a high-yieldcollateralized loan obligation (CLO). Moody's noted that LehmanBrothers Holdings Inc.'s is the guarantor to the counterparty'spayment obligations under the sub-participation agreements andunder the asset swaps.

Moody's has withdrawn the ratings because it believes it hasinsufficient or otherwise inadequate information to support themaintenance of the ratings.

KOUTONS RETAIL: Finalizes Debt Restructuring Plan-------------------------------------------------ET Now reports that Koutons Retail India Ltd's debt restructuringplan has been finalized and the lenders will meet this week forfinal approval, according to sources familiar with thedevelopment.

ET Now discloses that the company's total debt is INR660 crore outof which the long term debt of INR500 crore that will be payableover a period of 10 years including a 2 year moratorium.

According to the report, the company will not have to pay anymoney to the bankers for first 2 years in terms of interest on theprincipal amount. The average interest rate on the long term debtis around 10.5% to 11%, ET Now discloses.

ET Now relates that Koutons Retail also plans to bring down thenumber of stores from the current 1,060 to 800. The company has atotal of 10 lenders which include Indian Overseas Bank, PunjabNational Bank, Bank of India & Bank of Baroda, according to thereport.

Koutons Retail's market capitalization has come down by 93% overthe last one year and 63% from January 2011, ET Now discloses. ETNow says the promoter's hold 21.74% in the company out of which97.04% of the shares are pledged according to the shareholdingpattern details available on Bombay Stock Exchange as on June 30,2011.

Sources told ET Now that the company may look at offloadingminority stake in the company once the debt restructuring processis completed.

According to ET Now, Koutons Retail, which went public in 2007,raised long-term debt from a consortium of banks led by IndianOverseas Bank three years ago, to take advantage of the thenbooming retail sector.

The company started as a men's brand in India, but later extendedits portfolio to accommodate women and children wear. But, theeconomic slowdown in 2008 had an adverse impact on overall salesand the company had to stall expansion plans. Inventories piledup and the company fell short of cash, ET Now states.

As reported in the Troubled Company Reporter-Asia Pacific onDec. 27, 2010, livemint.com said Koutons Retail India Ltd wasfacing at least four lawsuits, of which two are winding-uppetitions filed in the Delhi high court by its suppliers torecover dues. In December 2010, livemint.com relateds, BerryCotts Pvt. Ltd, a New Delhi-based vendor of fabrics, filed awinding-up petition against the troubled retailer. Anotherwinding-up petition was earlier filed by RC Velvet, a supplier ofcorduroy fabric based in Gurgaon near New Delhi, according tolivemint.com. Fortunex Ltd, headquartered in Hong Kong withfacilities in Dhaka, Bangladesh, has also moved court to recoverdues, livemint.com added.

About Koutons Retail

Based in India, Koutons Retail India Limited (BOM: 532901) --http://www.koutonsparivar.com/-- engages in the business of manufacturing, trading and selling of textile products,accessories and shoes. The Company's collection offers a range offormal and casual wear for women and children. Its brands includeLes Femme, which offers women wear, and Koutons Junior, whichoffers kids wear.

CRISIL believes that MI's business risk profile will remainconstrained by its high dependence on a few projects, and industryand geographic concentration in Maharashtra. The outlook may berevised to 'Positive' in case MI continues to increase its scaleof operations and maintains its healthy order book. Conversely,the outlook may be revised to 'Negative' if MI's financial riskprofile deteriorates, most likely because of large working capitalrequirements or significant delays in executing projects.

About Meru Industries

Set up by Mr. Sharad Gore in 1988, MI manufactures criticalequipment and implements projects on a turnkey basis for sugarplants. Based in Pune (Maharashtra), MI has three manufacturingplants there. The combined area of the three plants is 1.66 acres.Initially, MI manufactured small equipment required by watertreatment and sugar plants. Gradually, the firm startedmanufacturing critical equipment for the sugar industry. The firmalso started exporting its products to southern African countries.Since 2007-08 (refers to financial year, April 1 to March 31), thefirm has been implementing projects on a turnkey basis for sugarplants, and has reported a healthy growth in revenues in 2010-11with healthy order book.

MI reported a profit after tax (PAT) of INR12 million on net salesof INR283.7 million for 2009-10, as against a PAT ofINR14.3 million on net sales of INR395.1 million for 2008-09.

CRISIL believes that MIL will sustain its credit risk profile overthe medium term backed by its promoters' extensive industryexperience and moderate financial risk profile. The outlook may berevised to 'Positive' if the company substantially increases itsscale of operations while maintaining its financial risk profile.Conversely, the outlook may be revised to 'Negative' if itsfinancial risk profile deteriorates due to significant stretchingof working capital cycle, or cost/time overruns in its expecteddebt-funded capital expenditure.

About Mantra Industries

Incorporated in 2009 by Mr. Ganesan Nadar and his family members,MIL manufactures pressure cookers and pans. The company is alsoplanning to manufacture wet grinders from 2011-12 (refers tofinancial year, April 1 to March 31) onwards. MIL sells itsproducts through Maha Marketing Pvt Ltd under the brand, Mantra,in Tamil Nadu (TN) and other states in South India. The companyhas an annual installed capacity of manufacturing 500,000 cookersat its unit in Coimbatore (TN).

MIL is estimated to have reported on a provisional basis a profitafter tax (PAT) of INR1.7 million on net sales of INR95.2 millionfor 2010-11, as against a PAT of INR0.8 million on net sales ofINR52.8 million for 2009-10.

The ratings reflect OIL's average financial risk profile, markedby moderate net worth and gearing, and the benefits that thecompany derives from its promoters' extensive experience in thecastor oil derivatives business and the power generation industry,and its sound operational capabilities. These rating strengths arepartially offset by the susceptibility of OIL's operating marginto the volatility in its raw material prices, and the company'sexposure to risks related to commercialisation of its powerproject.

Outlook: Stable

CRISIL believes that OIL will continue to benefit from itscomfortable market position in the castor oil derivativesbusiness, over the medium term. The outlook may be revised to'Positive' in case of substantial improvement in OIL's revenuesand profitability, after implementation of its verticallyintegrated operations and power generation capital expenditure(capex) programme. Conversely, the outlook may be revised to'Negative' in case of significant time and cost overruns in OIL'scapex plans, if the company's margins decline, or if it undertakesany larger-than-expected, debt-funded capex, resulting indeterioration of its financial risk profile.

About Octant Industries

Promoted by Mr. Manmohan Sahu, OIL is based in Hyderabad (AndhraPradesh). It is in the castor oil derivatives business, engaged incontract farming of castor seeds, and implementation of biomassand hydropower generation projects. It manufactures castor oilderivatives such as British Standard Specification castor oil,hydrogenated castor oil, and 12-hydroxystearic acids.

OIL, which was earlier in the software and finance business,demerged its finance division in 2010-11 (refers to financialyear, April 1 to March 31) and merged with three companies:Swarnajyothi Agro & Exports Ltd, which was in the castorderivative business, and Vanishekhar Green Energy P Ltd andIndrabathi Energies Pvt Ltd, which had obtained required licensesfor implementation of power generation projects. The softwarebusiness is expected to be discontinued in 2011-12. The companyplans to set up a biomass power plant and castor oil extractionplant over the medium term with a total outlay of aroundINR570 million, which is to be funded in debt-to-equity ratio of70:30.

OIL's provisional profit after tax (PAT) was INR14.7 million onsales of INR555.5 million for 2010-11, against a PAT ofINR13.1 million on sales of INR335.2 million for 2009-10.

The ratings reflect instances of delay by PAIPL in servicing itsdebt; the delays have been caused by the company's weak liquidity.

PAIPL also has a modest scale of operations, and moderatefinancial risk profile marked by a small net worth, slenderoperating profitability, and below-average debt protectionmetrics. PAIPL, however, benefits from its promoters' extensiveexperience in the automotive industry.

About Precision Auto

PAIPL was set up in 1997 by Mr. B M Khairnar in Nashik(Maharashtra). The company commenced commercial operations in2002-03 (refers to financial year, April 1 to March 31). PAIPLmanufactures fuel tanks for vehicles for Mahindra Scorpio, a sportutility vehicle of Mahindra and Mahindra Ltd (rated 'CRISILAA+/Stable/CRISIL A1+/CRISIL GVC Level 1'). PAIPL alsomanufactures press components and vacuum connections which areused in automobiles. More than 90 per cent of its revenues aregenerated from the fuel tanks division. The company has amanufacturing unit at Nashik, with capacity of about 6,000 fueltanks per month. Currently, the unit is utilising about 60 percent of its installed capacity.

PAIPL's estimated sales for 2010-11 are around INR230 million.PAIPL reported a profit after tax (PAT) of INR1.8 million on netsales of INR200 million for 2009-10, against a PAT ofINR3.5 million on net sales of INR141 million for 2008-09.

PRIYADARSHINI SAHAKARI: CRISIL Cuts Rating on INR130MM Loan to B------------------------------------------------------------------CRISIL has downgraded its rating on the bank facilities ofPriyadarshini Sahakari Soot Girni Ltd to 'CRISIL B-/Negative' from'CRISIL B+/Stable', while reaffirming its rating on the company'sshort-term bank facilities at 'CRISIL A4'.

The downgrade reflects expected decline in PSSGL's net cashaccruals because of large inventory losses in the first half of2011-12 (refers to financial year, April 1 to March 31). Thelosses were caused by fall in cotton prices by around 35 per centin during the first quarter of 2011-12, since the price peaked inMarch 2011. CRISIL expects that the company's cash accruals in2011-12 would not be sufficient to honor the long term debtobligations due during the same period.

The ratings also reflect PSSGL's limited track record ofoperations and susceptibility of its operating margin tovolatility in cotton prices. These rating weaknesses are partiallyoffset by PSSGL's healthy operational efficiencies resulting inhigher yield and hence, higher production.

Outlook: Negative

CRISIL believes that the PSSGL's liquidity will deteriorateprimarily because the company is not expected to generate adequatecash accruals to meet its fixed debt repayments over the nearterm. The ratings may be downgraded if PSSGL is not able toservice its debt obligations in a timely manner. Conversely, theoutlook may be revised to 'Stable' if there is an improvement inthe company's liquidity, driven by higher-than-expected cashaccruals.

About Priyadarshini Sahakari

PSSGL was established in 1991 in Yavatmal (Maharashtra) to assistthe development of the small-scale cotton yarn manufacturingindustry in the region. It was formed as a joint initiative of theGovernment of Maharashtra and the textile ministry. PSSGLmanufactures cotton yarn.

PSSGL reported, on provisional basis, a profit after tax of INR2million on net sales of INR362 million for 2010-11; the companyreported a net loss of INR4.4 million on net sales ofINR278 million for 2009-10.

The rating reflects aggressive capital expenditure (capex) plansof the company and its exposure to project implementation risks,large working capital requirements, and susceptibility tovolatility in raw material prices. These rating weaknesses aremitigated by the extensive industry experience of SEPL's promotersand healthy demand prospects for steel products.

Outlook: Stable

CRISIL believes that SEPL will implement its projects on schedulesupported by the promoters experience and willingness to infuseadditional fund in case required. The rating may be revised to'Positive' if the company generates better-than-expected revenuesand cash accruals and also strengthens its capital structure andimproves liquidity through infusion of fresh equity. Conversely,the outlook may be revised to 'Negative' in case of any majordelay in project implementation, or further impact on itsliquidity due to lower profitability.

About Scan Energy

SEPL, part of the Scan group, was incorporated in 2007. Thecompany is currently setting up a steel billet and barsmanufacturing unit in Mahboobnagar district (Andhra Pradesh),around 60 kilometers from Hyderabad. The company is setting upthree 15 tonne induction furnaces to manufacture billets and a500-tonnes-per-day rolling mill to manufacture steel bars. Theproject cost is estimated at INR1.45 billion of whichINR0.97 billion will be funded through debt and the remainingINR480 million through equity. Around INR600 million has alreadybeen incurred toward this project and two 15-tonne furnacesstarted production, one in July 2010 and another in September2011.

The Scan group comprises two other companies, Scan Steels Ltd andNav Durga Fuels Pvt. Ltd. Both these companies also manufactureand trade in iron and steel products.

For 2010-11 (refers to financial year, April 1 to March 31), SEPLreported profit after tax (PAT) of INR6.81 million on net sales ofINR373.3 million.

CRISIL believes that SSBT will continue to benefit over the mediumterm from its partners' established position in the bottle tradingbusiness. The outlook may be revised to 'Positive' if the firmscales up its operations significantly, while it sustains itsprofitability, resulting in significant improvement in itsfinancial risk profile. Conversely, the outlook may be revised to'Negative' in case of any large debt-funded capital expenditureprogramme, large capital withdrawals, or sharp decline in volumesor operating margin leading to deterioration in capital structure.

About Sai Srinivasa

Set up in 2004 by Mr. Uppala Srinivas in Hyderabad (AndhraPradesh), SSBT trades in glass bottles used for packaging ofalcoholic beverages. The firm's facilities are in Hyderabad andhave an installed capacity to process 300,000 bottles per day.SSBT's day-to-day operations are managed by Mr. Uppala Srinivas.The firm's other partners include the founder's wife, Mrs. USwapna, and friend, Mr. R Laxman. The customers of the firminclude United Breweries Group and United Spirits Limited amongothers.

SSBT, on a provisional basis, reported a profit after tax (PAT) ofINR4 million on net sales of INR695 million for 2010-11 (refers tofinancial year, April 1 to March 31), against a PAT ofINR2 million on net sales of INR256 million for 2009-10.

The rating reflects TCPL's constrained financial risk profile dueto the large debt-funded capital expenditure (capex) and its smallscale of operations in the highly fragmented logistics industry.These rating weaknesses are partially offset by the benefits thatTCPL derives from favorable government policies for private sectorparticipation in cold storage and warehouse infrastructure.

Outlook: Stable

CRISIL believes that TCPL will benefit over the medium term fromthe healthy demand prospects for cold storage in the domesticmarket. The outlook may be revised to 'Positive' if the companycompletes the capex without any time or cost overrun along withsuccessful stabilization of its operations. Conversely, theoutlook may be revised to 'Negative' in case TCPL undertakeslarger-than-expected debt-funded capex programme or there is anymaterial time or cost overrun in the project, leading to lower-than-expected sales and profitability.

About Triton Cold

TCPL, part of the TRITON group, was incorporated in 2010 andprovides logistical services primarily through cold storage chainand cold storage trucks. The company plans to establish coldstorage chains across six cities in the country with a totalcapacity of 8700 pallets (which is equivalent to 8700 tonnes).Currently, TCPL operates leased facilities of 850 pallets of coldstorages in five cities and also provides cold storage transportthrough 15 rented cold storage trucks in the country. In 2010-11(refers to financial year, April 1 to March 31), the company'stotal revenue was around INR14.5 million (80 per cent from coldstorage trucks and 20 per cent from cold storage chain).

The ratings reflect instances of delay by UMPL in servicing itsdebt and prolonged overdrawals of cash credit facility; the delayshave been caused by the company's weak liquidity.

UMPL is also susceptible to risks related to stabilization ofoperation and expectation of low cash accruals in initial stage ofoperations. These rating weaknesses are partially offset by UMPL'smoderate business risk profile supported by its promoters'experience.

About Uluberia Metaliks

UMPL was incorporated in 2006 and is promoted by Mr. RajendraKumar Jhunjhunwala and his brother, Mr. Surendra KumarJhunjhunwala. The company has started manufacturing pig iron fromJune 2011 with installed capacity of 80,000 tonnes per annum. Thecompany's manufacturing plant is located in Uluberia, which isabout 50 kilometers from Kolkata (West Bengal). The plant wasexpected to be operation from FY2008 but due to delays in availingclearances from the government, the project got delayed.

CRISIL believes that the ZLPL will benefit over the medium termfrom its promoters' industry experience and its moderate capitalstructure. The outlook may be revised to 'Positive' if the companysubstantially improves its scale of operations and diversifies itscustomer base. Conversely, the outlook may be revised to'Negative' in case of any significant pressure on the company'srevenue or margins or if it undertakes large debt-funded capitalexpenditure programme or in case of deterioration of relationshipswith key customers thereby affecting its financial risk profile.

About Zuha Leather

Promoted in 1985, ZLPL processes leather. The company has atannery in Vaniyambadi (Tamil Nadu) with a production capacity of6 million square feet per annum. About 60 per cent of the rawhides are tanned through vegetable tanning process. The companyderives close to 70 per cent of its revenues from export toleather goods and shoe manufacturing companies in Korea, Taiwan,China, and other East-Asian countries. The company derives around60-65 per cent of its revenues from its two major customers -Korea based Simone Acc. Collection Ltd and Taiwan based SmartFaith Trading Company.

ZLPL's profit after tax (PAT) and net sales are estimated at ofINR7.64 million and INR437.97 million respectively for 2010-11(refers to financial year, April 1 to March 31); the companyreported a PAT of INR5.41 million on net sales of INR428.21million for 2009-10.

=================I N D O N E S I A=================

MATAHARI PUTRA: Moody's Changes Outlook on 'B1' CFR to Negative---------------------------------------------------------------Moody's has changed its outlook on PT Matahari Putra Prima's B1corporate family rating to negative from stable.

Ratings Rationale

"The change in outlook reflects Moody's expectation that Matahariwill operate at higher leverage levels, having re-levered itsbalance sheet since the sale of its department store business inApril 2010," says Annalisa DiChiara, a Vice President and SeniorAnalyst at Moody's.

"Whilst the performance of its Indonesian hypermarket operationshas been solid, an increasingly competitive marketplace andnegative free cash flow in the current financial year could impedethe improvement in metrics that had previously been factored intoMoody's B1 rating and stable outlook," adds Ms. DiChiara, who isalso the lead analyst for Matahari.

Following the sale of its department stores business in April2010, Moody's had expected Matahari to sustain an adjustedleverage of about 3.5x debt/EBITDA.

While the company initially used a portion of the proceeds toreduce debt, it has since re-levered its balance sheet into therange of IDR1.5 trillion to IDR2.0trillion (US$170million) -- alevel it is likely to maintain going forward. As such, Moody'sexpects adjusted debt/EBITDA to be about 4.5x at FYE2011.

"While Matahari's operating performance is currently in line withMoody's expectations, competition from Carrefour, Giant and Herocontinues to intensify in the Indonesian market. This could putadditional pressure on its growth and margins," says Ms. DiChiara,adding "its willingness to pay significant special dividends alsodemonstrates a potentially more aggressive risk appetite."

The B1 rating reflects its position as one of the largest, fastmoving consumer goods retailers in Indonesia, its leading marketposition in the hypermarket segment, and its proven executioncapabilities.

Ratings could come under further pressure, should credit metricsfail to improve or even deteriorate, such that adjusteddebt/EBITDA consistently exceeds 4.5x.

Moody's also expects the company to maintain cash and short-terminvestments above IDR800 billion (US$90million).

The principal methodology used in rating PT Matahari Putra Primawas the Global Retail Industry Methodology published in June 2011.

PT Matahari Putra Prima Tbk is a leading retailer in Indonesiawith multiple retail formats. It operates hypermarkets,supermarkets, and family entertainment outlets in over 39 cities.The Lippo Group controls an equity interest of about 57% inMatahari.

=========J A P A N=========

VICTOR COMPANY: CDS Swaps Triggered by Restructuring, ISDA Rules----------------------------------------------------------------Yusuke Miyazawa at Bloomberg News reports that the InternationalSwaps & Derivatives Association said credit-default swaps insuringdebt of Victor Company of Japan Ltd., a unit of JVC Kenwood Corp.,will be paid out after the manufacturer restructured payment onits debt.

ISDA's Japan Determinations Committee ruled on September 21 thatVictor triggered a so-called restructuring credit event when itagreed with its bondholders to extend the maturity ofJPY12 billion ($156 million) in bonds last month, according toBloomberg. Out of 15 committee members, Goldman Sachs Group Inc.and JPMorgan Chase & Co. voted against the decision, Bloombergsays.

Bloomberg notes that the committee's ruling came after fourmeetings failed to reach a conclusion. This is the first creditevent in Japan since consumer lender Takefuji Corp.'s bankruptcytriggered payout of the swaps in October 2010, and the firstrestructuring event since Aiful Corp. won approval from creditorsfor a debt restructuring plan in December 2009, says Bloomberg.

SLS GROUP: In Near Collapse After Court Convicts Chairman of Fraud------------------------------------------------------------------The Korea Herald reports that SLS Group, which came to publicattention on Thursday when its chairman Lee Kuk-chul accusedformer vice minister of culture Shin Jae-min of taking billions ofwon in bribes, is facing disintegration.

Mr. Lee, a former civil servant, began his career as a businessmanwith a factory producing parts for trains. He then acquired HaitaiHeavy Industries' plant in Changwon, South Gyeongsang Province,the Herald discloses. Mr. Lee's company was involved indeveloping new carriages for the Mugunghwa train, for which it wasawarded a presidential commendation.

The Korea Herald relates that the group then acquired theshipbuilder ShinaSB Yard Co., and by 2009 it was posting annualsales of over KRW1 trillion.

However, the Korea Herald says, Mr. Lee was found to have doctoredthe group's accounts and was sentenced to five years probation inNovember.

Mr. Lee was also indicted without detention in December for using$100 million raised from a Singapore-based shipping firm to hidethe fact that SLS Shipbuilding had lost KRW140 billion in capital,the Korea Herald states.

As a result, the shipbuilder has since begun a workout process,while other subsidiaries of the group have been declared bankrupt,the Korea Herald adds.

Bribery Allegations Against Shin

Mr. Lee told Yonhap News Agency in an interview that he hadprovided KRW10 million (US$8,500) to KRW20 million every monthfrom 2008 to 2010 in bribes to Shin Jae-min when Shin was a viceculture minister in the Lee Myung-bak administration.

Yonhap relates that Mr. Lee claimed Mr. Shin also received moneyranging from KRW3 million to KRW10 million every month between2002 and 2006 when he was a reporter for a local newspaper and upto KRW100 million during 2007 when he was in the president'selection camp and worked as a secretary to the president-elect.

According to Yonhap, Mr. Shin voluntarily stepped down as aculture minister nominee in August last year after confirmationhearings raised deep suspicions about financial activities thatincreased his personal assets, real estate speculation and conductunfit for a public official.

Mr. Shin, says Yonhap, denied the bribery allegations and theformer official said he was carefully considering a legalresponse.

About SLS Group

Korea-based SLS Group is a mid-grade business group with 10subsidiaries, including heavy industry and shipbuilding firms.

* SOUTH KOREA: Credit Default Rates Rise 19.5% at the End of June-----------------------------------------------------------------Kang Seung-woo at The Korea Times reports that financial companiessaw their number of delinquent customers increase by nearly200,000 this year as more people struggle to repay debt amid thealarming deterioration of family finances.

The Korea Times relates that industry figures show the defaultrates for households approved by commercial banks have surpassedthe level shown during recent financial crises, and an increasingnumber of small- and medium-sized companies are sinking under asea of red.

Citing statistics by credit-rating agency National Information andCredit Evaluation), The Korea Times discloses that the number ofindividual credit defaulters reached 1.1 million at the end ofJune, up a staggering 19.5% from 919,570 in December last year.

The number represents a rebound in the number of delinquents,which had been declining as the country navigated its way out ofthe economic turmoil that erupted in 2008, the report notes.

After reaching 1.21 million in 2008, The Korea Times says, thenumber of delinquent individuals declined by 170,000 to1.03 million in 2009 and by another 130,000 in 2010.

According to the report, companies are also struggling to repaydebt. The Korea Credit Guarantee Fund said its subrogationpayment for corporate loans accounted for 3.6% of total creditguarantees in August, compared to 3.2% at the end of last year.The rate soared to 4% in June, the Korea Times adds.

The couple, along with investment companies Aorangi Securities andHubbard Management Funds and several charitable trusts, were putinto statutory management on June 20 last year.

The Timaru Herald, citing documents from the Companies Office,says Tauranga-based liquidator Kenneth Brown was appointed toWoodbury Rise on September 21, at the direction of the Hubbards'statutory managers.

Mr. and Mrs. Hubbard are the sole directors of Woodbury Rise. Thesole shareholder is their nominee company, Forresters.

According to Timaru Herald, the sixth statutory managers reportfrom Grant Thornton noted: "Two stalled North Island propertydevelopment projects owe Aorangi and Mr. Hubbard close toNZ$10 million in total. Overseas funding is being pursued by theborrowers and the result of this worldwide search is expectedsoon.

"No property sales have been made from these developments for atleast 18 months, meaning no payments have been made to Aorangi.Interest is accruing but the state of the local property market issuch that the full loan value is unlikely to be received. We haveassessed the current value of the land less holding and furtherdevelopment costs in our assessment of the Aorangi loan bookvalue."

The website for Woodbury Rise said it was a subdivision in aprestigious yet affordable residential development located inCheyne Rd and Pyes Pa, Tauranga, the Timaru Herald relays.

About Aorangi Securities

Aorangi Securities Ltd was incorporated in 1974 and is solelycontrolled by the Hubbards.

On June 20, 2010, Aorangi Securities and seven charitable trustswere placed into statutory management, and Allan and Jean Hubbardwere also placed into statutory management as "associatedpersons" of those entities. The seven charitable trusts includedin the statutory management are Te Tua, Otipua, Oxford, Regent,Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpsonof Grant Thornton were appointed as statutory managers.

The Temple Bar Family Trust and Barns Charitable Trust were alsoput into statutory management in September 2010 on recommendationfrom the Securities Commission. Hubbard Churcher TrustManagement and Forresters Nominees Company were also added to thelist of businesses under management by Trevor Thorton, RichardSimpson and Graeme McGlinn on September 20, 2010.

The Troubled Company Reporter-Asia Pacific reported on May 12,2011, that the Hubbards filed judicial review proceedings at theTimaru High Court challenging the decision to place them intostatutory management and seeking orders that they be removed fromstatutory management.

The SFO has dropped the fraud charges against Allan Hubbardfollowing Mr. Hubbard's death on September 2.

POUNAMU PRIME: Receivers, Liquidators Seek to Recover NZ$30MM-------------------------------------------------------------Tracey Roxburgh at Otago Daily Times reports that liquidators andreceivers are working to recover more than NZ$30 million owed tocreditors of Pounamu Prime Ltd, a company owned by bankruptAuckland developer Dan McEwan.

Otago Daily Times discloses that Mr. McEwan, who once planned toconstruct the Hilton Queenstown in Frankton Rd, incorporated thespecial purposes entity in November 2003 to develop a 34-apartmentcomplex in Frankton Rd.

According to the news agency, receivers Grant Graham and BrendonGibson, of KordaMentha, were appointed by the Bank of ScotlandInternational (Australia) in April 2009, with the company owingmore than NZ$20 million to BOSI (Australia) and more thanNZ$7 million to Strategic Finance Ltd. However, BOSI (Australia),the general security agreement (GSA) holder, had since sold thedebt to Quilington Pte Ltd.

Mr. Gibson told the Otago Daily Times last week he and Mr. Grahamhad since retired as receivers.

Otago Daily Times relates that Messrs. Graham and Gibson said intheir final report, dated September 13, that as at July 13, BOSI(Australia) was owed about NZ$12.3 million, plus accrued interest,and Strategic Finance was owed just over NZ$7 million.

Citing the new receivers' report, Otago Daily Times disclosed thatbased on information provided, NZ$20,080,000 plus any accruedinterest and penalties was outstanding in respect of the GSA datedJune 12, 2007. "It is unlikely that the general securityagreement holder will be paid in full," the new receivers said.

The new receivers had been advised there was NZ$3,139,610 owing tothe Commissioner of Inland Revenue, of which NZ$1,986,119 waspreferential, Otago Daily Times relates. Unsecured tradecreditors were owed $201,461.

The new receivers' report, as cited by Otago Daily Times, said nodistribution would be made to preferential creditors.

"As things currently stand, it appears that no funds will beavailable to meet the claims of unsecured creditors and that therewill be insufficient funds to repay the full amount of the debtdue to the general security agreement holder."

On Sept. 14, 2011, Insolvency and Trustee Service (ITS) wasappointed as the company's liquidator, following a petition byInland Revenue, according to Otago Daily Times.

Otago Daily Times relates that an ITS spokeswoman said thereceivership would continue "in tandem with the liquidation".

The liquidator's first report is due next month, Otago Daily Timesadds.

=================S I N G A P O R E=================

TRUE SPA: Customers Agree to Settlement Deal--------------------------------------------Tanya Fong at channelnewsasia.com reports that the application fora winding-up order sought by a group of True Spa customers wassettled in the High Court on Thursday, after the customers agreedfor their unused credit to be serviced by nine other spas.

All True Spa customers will be able to enjoy a minimum of one spatreatment a month at any of the nine spas without restriction onthe hours, according to the report.

According to channelnewsasia.com, Mr. Salem Ibrahim, lawyer forthe 332 True Spa customers who started the court action, toldJustice Andrew Ang that Mr. Patrick Wee, CEO of True Spa, agreedto help meet the cost of realizing the customers' unused creditand the legal costs of the customers who took it to court.

Mr. Ibrahim, as cited by channelnewsasia.com, said Mr. Wee hasalso given a personal guarantee that the costs will be met. Hewill be footing between 15% and 20% of the cost of unrealisedpackages, while the nine spas will pay for the rest, the reportnotes.

channelnewsasia.com relates that unused packages of thesecustomers have been estimated to be about SG$10 million.

Customers will be able to register for coupons from October 15 andstart spa treatments on November 1, the report adds.

As reported in the Troubled Company Reporter-Asia Pacific onAug. 11, 2011, channelnewsasia.com said some 247 creditors of TrueSpa who have banded together to wind up the company to reclaimabout SGD701,000 of unused pre-paid treatments. The move cameafter several letters of demand and statutory demand were issuedin March by customers to True Spa asking for their money back butno payment was made. channelnewsasia.com related that SalemIbrahim, who represents the creditors, said 31 more creditors hadsince stepped forward, bringing the claim now to about SGD796,000.

True Spa customers were left in the lurch last year after it wassold to another spa company, Subtle Senses, which collapsed inAugust last year, according to channelnewsasia.com.

True Spa Pte Ltd is a Singapore-based luxury spa.

*********

Tuesday's edition of the TCR-AP delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-AP editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The TuesdayBond Pricing table is compiled on the Friday prior topublication. Prices reported are not intended to reflect actualtrades. Prices for actual trades are probably different. Ourobjective is to share information, not make markets in publiclytraded securities. Nothing in the TCR-AP constitutes an offeror solicitation to buy or sell any security of any kind. It islikely that some entity affiliated with a TCR-AP editor holdssome position in the issuers' public debt and equity securitiesabout which we report.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR-AP. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historicalcost net of depreciation may understate the true value of afirm's assets. A company may establish reserves on its balancesheet for liabilities that may never materialize. The prices atwhich equity securities trade in public market are determined bymore than a balance sheet solvency test.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding,electronic re-mailing and photocopying) is strictly prohibitedwithout prior written permission of the publishers.Information contained herein is obtained from sources believedto be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the samefirm for the term of the initial subscription or balancethereof are US$25 each. For subscription information, contactChristopher Beard at 240/629-3300.